Billtrust combining with acquisition firm, going public

Payment processing solutions company Billtrust is combining with an acquisition firm in a deal that will see the Lawrenceville-based firm become a publicly traded entity, it announced Monday.

The business-to-business cash solutions company said in a news release it will combine with South Mountain Merger Corp. and change its formal name to BTRS Holdings Inc. The company will begin trading on the Nasdaq Stock Market under a new ticker symbol to be announced.

Billtrust’s management team, including Flint Lane, founder and CEO, Steve Pinado, president, and Mark Shifke, chief financial officer, will remain in place.

“As we begin our journey as a public company, we are thrilled to partner with the South Mountain team and know we will benefit from their extensive industry experience,” Lane said in a prepared statement. “We believe (the accounts receivable process) is ripe for innovation, and, together, we will continue to invest in opportunities to scale the business, growing both organically and inorganically, as we seek to tackle the large total addressable market.”

The company will have an estimated value of $1.3 billion at closing, Billtrust said.

Chuck Bernicker, CEO of New York-based South Mountain, said: “Over the years, I have had the pleasure of watching Flint and the Billtrust team solve some of the most complex problems in AR with their powerful technology platform. Billtrust’s end-to-end solutions are truly driving the digital transformation of AR, and represent the future of B2B payments. I couldn’t be more excited to partner with this visionary team to seek to transform B2B commerce.”

Billtrust’s equity holders will receive a combination of cash and stock in the deal, the company noted.

Both boards have approved the transaction, which is expected to close in early 2021, subject to customary approvals and conditions.

J.P. Morgan is serving as exclusive financial and capital markets adviser to Billtrust, and Cooley is serving as legal counsel for the transcation. Citi is serving as exclusive financial and capital markets adviser to South Mountain, while Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel for the transaction.

Citi and J.P. Morgan are serving as placement agents, while Mayer Brown is serving as their legal counsel.